Question
Stock sells for 22.50 per share, expected dividend is 1.92 and its constant growth rate is 6% new stock can be sold but a flotation
Stock sells for 22.50 per share, expected dividend is 1.92 and its constant growth rate is 6% new stock can be sold but a flotation cost of 8% would be incurred. how much would the cost of new stock exceed the cost of retained earnings?
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To calculate the cost of new stock and the cost of retained earnings we need to consider the flotati...
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
